Most of us want our assets managed according to our wishes after we pass away, and writing a will is a key step in making that happen. Equally important (but often overlooked) is naming an executor to ensure your will is carried out. Knowing how to choose an executor can help you find someone who’s trustworthy, up to the task, and legally qualified—and is an essential part of estate planning.
What Is an Executor, and Why Is Having One Important?
An executor is a person named in your will who is responsible for handling any outstanding debts and distributing your assets after your death. If you do not have a will, or if your will does not name an executor, the court will appoint someone to oversee these duties. When this happens, the chosen person (usually referred to as an “estate administrator”) may not be who you would have selected for the role.
The Duties of an Executor
After you pass away, your executor takes the lead role in settling your estate. He or she coordinates dealings with court representatives, beneficiaries, creditors, and other pertinent parties until all debts are paid off, all assets are distributed, and the estate is closed.
The person you name should be able to fulfill the duties of an executor:
- Initiating the probate process: This includes providing the will to the court and filing other required paperwork.
- Ascertaining assets and liabilities: Your executor will create an inventory of your belongings and attempt to gain an understanding of any debts owed.
- Managing possessions and bills: The executor is responsible for maintaining your property and other holdings as needed, as well as paying off taxes and other debts.
- Determining the value of assets: This is done with the help of accountants, lawyers, appraisers, or other professionals.
- Keeping accurate records: As the probate process is concluded, your executor will need to provide to the court detailed documentation of all estate-related transactions.
- Confirming full legal compliance during the probate process: The executor typically works closely with an attorney to meet all requirements.
- Helping resolve disputes: Conflicts most often arise among beneficiaries and creditors regarding asset distribution or debt payment.
- Distributing assets: This process will be guided by the will and/or court directives.
- Petitioning the court for estate closure: This is the executor’s final duty, once all debts have been paid and all assets have been distributed.
Legal Requirements for an Executor of a Will
Not just anyone can be an executor of an estate, as minimum qualifications must be met. Most states legally require the executor of a will to be:
- A U.S. resident
- At or above a minimum age (typically 18 or 21 years old, depending on the location)
- Free of any legal incapacities that would make them unable to uphold the responsibilities of the role
Traits and Qualifications To Seek Out in an Executor
Considering the importance of the role and the many responsibilities the job carries with it, choosing your executor is not a decision that should be taken lightly. Good executors share several common traits and qualifications. These individuals tend to be:
- Someone you and your loved ones trust
- A person with the knowledge to make important financial decisions on your behalf
- Responsible and meticulous, with the maturity and work ethic to excel in a demanding job
- Someone who isn’t substantially older than you and is likely to outlive you
- Someone who lives in your area, making it easier to manage the executor’s responsibilities
5 Questions To Ask When Choosing An Executor
Before choosing your executor, ask yourself these questions about your top candidates:
1. Do they have the time to take on the role?
Being an executor can be a time-intensive job, particularly when an estate is large or complicated.
2. Do they have the right temperament for the job?
An executor must be patient and composed when dealing with loved ones, creditors, the court, and other active participants in the estate-closing process.
3. Is the person organized and driven?
Settling an estate often involves significant paperwork and a long to-do list. Choose an executor with proven organizational skills and a strong drive to thoroughly complete each step in the process.
4. Are they willing to take on the role?
Before finalizing your decision, discuss the responsibilities of executorship with your top candidate(s) and confirm they’re willing to assume them.
5. Does the size and complexity of your estate call for a professional executor?
If your estate includes many assets or complex challenges, consider appointing a professional executor, such as a banker, accountant, or attorney.
It’s also important to know how to appoint an executor once your decision is made. To appoint an executor for your estate, you must name your person of choice in your will, which must be filed with the probate court after your death. In most cases, the court will prioritize the person you name and, after reviewing his or her suitability, officially appoint that person as your executor.
Get Expert Estate Planning and Settlement Assistance at Arthur State Bank
At Arthur State Bank, we offer a full range of trust and wealth-management services, including services for estate planning and settlement. Whether you’re just beginning the process or would like to revisit and update your existing plans, our experienced, knowledgeable team is happy to assist you. Contact us today to learn more.
